Prepare for Your Trading Journey
Before you invest any money, it's crucial to build a solid financial foundation and define your goals.
- Ensure Financial Readiness: Pay off high-interest debts (like credit cards) and establish an emergency fund. This ensures you won't have to dip into your investment funds for unexpected expenses .
- Define Your Goals and Risk Appetite: Ask yourself why you are investing. Are you seeking long-term growth, short-term income, or a combination? Your goals, age, and investment timeframe will shape your strategy and help you determine how much risk you are comfortable taking .
- Learn the Lingo and Mechanics: Understand that you need a broker to place trades on the ASX. Familiarize yourself with basic terms like capital growth (profit from selling a share for more than you paid) and dividends (a portion of company profits paid to shareholders).
